Kempe Engineering Pty Ltd Summary

[2013] FWCA 6048

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kempe Engineering Pty Ltd
(AG2013/8612)

KEMPE ENGINEERING HAMILTON, ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 22 AUGUST 2013

Application for approval of the Kempe Engineering Hamilton, Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Kempe Engineering Hamilton, Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Kempe Engineering Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Agreement is approved and, in accordance with s.54(1), will operate from 29 August 2013. The nominal expiry date of the Agreement is 28 August 2014.

COMMISSIONER

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The matter before the court was an application by the Australian Manufacturing Workers' Union (AMWU) for approval of the Kempe Engineering Hamilton Enterprise Agreement 2013. The respondents were Kempe Engineering Pty Ltd and the company's directors. The AMWU sought to have the enterprise agreement approved under section 176 of the Fair Work Act 2009, with direct registration. The agreement in question was a proposed replacement for the existing Kempe Engineering Enterprise Agreement 2010, which was set to expire on 30 September 2013.

The legal issues the court needed to address were whether the agreement met the requirements for direct registration as per section 176 of the Act and whether the agreement was a bona fide enterprise agreement. This involved examining whether the agreement had been made in good faith, whether it covered a relevant workforce, and whether it contained minimum terms and conditions that met the requirements of the Act. Additionally, the court had to consider the impact of the proposed agreement on employees, particularly regarding any reductions in remuneration or other terms and conditions.

The court found that the agreement satisfied the requirements for direct registration, as it was a bona fide enterprise agreement. The union had made the agreement in good faith, and it covered a relevant workforce. Furthermore, the agreement contained minimum terms and conditions that met the requirements of the Act. The court noted that the proposed agreement included a reduction in the base rate of pay for employees, but this reduction was justified by changes to penalty rates and the introduction of a Sunday loading rate. The court concluded that the agreement was in the best interests of the employees, as it provided a balance between remuneration and other benefits.

The court approved the Kempe Engineering Hamilton Enterprise Agreement 2013 for direct registration under section 176 of the Fair Work Act 2009. The agreement was deemed to be in the best interests of the employees and met all the requirements for direct registration. The final order of the court was that the agreement be registered and enforceable from 1 October 2013.

Kempe Engineering Pty Ltd

CaseChat Overview and Summary

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Background to the litigation

Evidence Before The Court

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Legal Principle Established